Cravath, Swaine & Moore is leading the charge in raising associate pay across its firm, becoming the first to surpass the senior associate salary scale established by Milbank earlier this month. The law firm’s seniority-based pay scale now stands at a base salary range from $225,000 to $420,000; this information was taken from a company memo made public through Above The Law.
Alongside this pay increment, Cravath is also ensuring annual bonuses of up to $105,000 for their most senior associates. More precisely, the firm increased base salaries for its first three classes of associates by $10,000, while its senior associates are to receive a $20,000 raise.
The introduction of this increased salary scale by Cravath follows the unexpected salary rise announcement from Milbank earlier this month. The latter’s decision was influenced by what Milbank Chairman Scott Edelman cited as “high levels of activity” here.
Typically, major law firms have maintained pace with one another in terms of associate compensation. Cravath’s decision to move beyond the salary increase introduced by Milbank could instigate a chain reaction of pay rises for associates among leading law firms. However, this mounting pressure may place several firms in a challenging position, as they grapple with the decision to keep up or remain as they were here.
Cravath will maintain the same annual bonus scale that was used by top firms over the past two years. These bonuses will be paid out on Friday, 15 December and will be awarded without the influence of billable hours, according to the firm’s memo.
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